Work Session
September 28, 2009
Present were: Mayor Bertrand, Councilors McCue, Lafleur, Poulin, Landry, Cayer, Remillard; absent were Councilors Goudreau, and Evans. Others present included Norm Charest, Bill Andreas, Corinne Cascadden, Andre Caron, Scott Gregory, Dick Poulin, Fran Warren, Patrick MacQueen, media and public
Bartlett School Request for Proposals
Andre Caron reported that the closing of Bartlett School has brought out a lot of interest in the building. It would behoove the City to send out a request for proposals to see what kind of potential is out there. An RFP should be done sooner rather than later to prevent deterioration and damage to the building.
Councilor Lafleur expressed concern that Marston School was closed then needed to be reopened as a school at considerable expense to the City.
Councilor Landry confirmed that the RFP process could be turned around quickly. Mr. Caron established that RFP’s would be brought to the City Council for consideration. Councilor Landry questioned the school system’s capacity if the Federal prison brings in new families. He asked if the school system can handle 20% more students. In response, Corinne Cascadden stated that some grades could handle 12 additional students and some grades are already at capacity and could not handle additional students without adding staff and space.
She went on to say that a proposed plan to put grades 7-12 at the high school is 3 to 5 years away. All services are needed in schools today. She affirmed that the City should not hold Bartlett for the purpose of a school.
Mr. Caron noted that in addition to the rfp’s the Council can be presented with a plan and costs for holding the building. Depending on what goes in, there could be dramatic changes to the building especially with apartments or condos.
Ms. Cascadden indicated that the building lost its grandfathered status with fire codes when it stopped being a school. Mayor Bertrand asked that the proposal to the City Council include the costs to bring the building up to fire codes and use as a school.
Mr. MacQueen expressed that the school board voted to close Bartlett as a school and it is their intent to leave it closed. It is important that a request for proposals be taken seriously with the intent of disposing of the property. Mayor Bertrand agreed saying that he would prefer to see a taxpayer in the building.
Councilor Lafleur mentioned a study that was done on the City’s school buildings and suggested that the Council review the study for future use.
Councilor Lafleur moved to authorize staff to prepare an RFP exploring the future use of Bartlett School; Councilor McCue seconded and the motion carried unanimously.
Revolving Loan Funds
Mayor Bertrand introduced the subject by saying that Norm Charest is pressing the need for a revolving loan fund for economic development. Mr. Charest reiterated the need for small amounts of capital that entrepreneurs need to go forward with projects. The future of Berlin’s economy will likely be with small businesses. Resources are geared for the old economy.
Mr. Charest reasoned that Berlin is trying to reinvent itself and it is likely that there will be a diverse mix of businesses that are going to need financing and the mechanism to help them isn’t there. Norm asked several people to come to the meeting to tell their stories. Fran Warren is the newest entrepreneur in need of money for the start-up of a small restaurant. He plans to put up a snack shack on Route 110 and needs $2,500 to $3,000 for equipment and start up costs. He feels he has the potential for good business but has tried all the avenues such as NCIC and BIDPA and his request for a loan is not big enough for them to consider. Mr. Charest stated that Fran demonstrates a story he hears ten times per year. The venture would put Fran to work and he would hire weekend staff but there is not
$3,000 to give.
Scott Gregory explained his experience with T-Birds recounting that they struggle to make ends meet and sometimes there is a need for new equipment. Small loans are hard to get.
Bill Andreas was asked to be at the meeting to express the perspective of a lender. Mr. Andreas maintained that it is hard for micro-business to get loans with their only resource being Micro-Credit NH. Small businesses get together and form an association offering loans on a graduated scale after the proposed business has gone through a business related tutorial. The peer group does lending.
Mr. Andreas went on to say that small businesses start with friends, family and often credit cards. Some communities can offer a lending program through Community Development Block Grants and HUD funds. Banks and regional lending groups have rules that make borrowers split their loan among several lenders; however federal money cannot be matched with another federal program.
Mr. Charest reasoned that we need to think of ways to accommodate the market. Councilor McCue commented that when a small business closes it causes a ripple effect on the surrounding businesses. He suggested sending staff off to look at other communities to see how they were able to establish a revolving loan fund. He is supportive of the idea that the community needs this resource and feels it would grow and attract business.
Mr. MacQueen noted that the difficulty is that the State constitution prohibits municipalities from offering taxpayer money to businesses. Mayor Bertrand asked if BIDPA could play a role and suggested a joint meeting with BIDPA.
Councilor Remillard, having sat on the BIDPA Board for a time, expressed that BIDPA did not have an interest. Lending is hard money and high risk. Micro-credit is a process but they have a need to survive. There is a price for high risk lending. She added that there is no harm in looking at other communities but the city should not be involved with private or risky lending.
Dick Poulin voiced that any mechanism would be useful. Bridge loans could keep someone going and able to change direction quickly. If the lending process is too lengthy, it may be too late.
Mayor Bertrand asked for action steps to move the process forward. What are we going to do as a body? Councilor McCue mentioned that there are communities in the North Country that have programs and finding out how they were started is a first step.
Councilor Cayer noted that the need has been identified. We need to go out and see if there are models that work and how it is done.
Councilor Poulin agreed that there is a need and we should look for a way to make funds available. Councilor Poulin moved to send Mr. Charest out to find other communities that have revolving funds to see how it works and report back to the Council; Councilor Cayer seconded. Time frame is four weeks or as soon as possible or sooner.
Mr. Charest indicated that he would like to work with Mr. MacQueen on this. Mayor Bertrand asked if some of Max’s time and efforts could be spent on helping with the problem. He is working on economic development for the valley and his resources are available.
Councilor McCue commented it is high time to hear what, if anything, the City of Berlin getting from the AVER economic development grant.
Other
Mayor Bertrand read a proclamation declaring the last Monday in September Family Day – a Day to Eat Dinner with Your Children
Councilor Lafleur commented that next weekend is promising to be eventful with Homecoming, Riverfire, and the Lumberjack Festival. The City Manager has worked very hard getting prepared for the bonfires on the river. He encouraged all to come out and enjoy the festivities.
Councilor Lafleur moved to go into non-public session per RSA 91-A:II (e) Consideration or negotiation of pending claims or litigation which has been threatened in writing or filed against the body; Councilor Cayer seconded and the motion carried unanimously by roll call.
Councilor Lafleur moved to come out of non-public session; Councilor McCue seconded and the motion carried unanimously by roll call.
Councilor McCue moved to seal the minutes until the litigated matters are resolved; Councilor Lafleur seconded and the motion carried.
Return to Public Session
Councilor Lafleur asked about the issue of railroad exemptions and Mr. MacQueen noted that the railroad crossings have been exempted and signs need to be posted.
Councilor Lafleur moved to adjourn; Councilor Poulin seconded and the motion carried. The meeting ended at 8:20 p.m.
Respectfully Submitted,
Susan Tremblay
Administrative Assistant
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